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Should a Listing Agent really ask a buyers to pay a short sale transaction fee?

jpeg I was holding an open house this weekend in a community that I specialize in. While at the open house I had a conversation with a couple about a short sale llisting in the community that they loved and wanted to purchase. I was told how their offer was accepted by the seller and then turned down by the listing agent because they did not want to pay the listing agent's short sale transaction fee!

I was shocked to hear that the listing agent was trying to get the buyers to pay him to do his job! Basically that is what a short sale transaction fee is! My feeling is that if an agent can't negotiate his own short sale and chooses to pay "an assistant" they it's the listing agent's expense.

I am going to be researching with CAR to find out if this practice is even legal.

What are your thoughts on listing agents charging buyers "short sale negotiator fees"?

Written By Tina Maraj, REALTOR Since 1989! www.TinaMaraj.com

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Posted by Tina Maraj Fullerton Realtor on 10/19/2009 11:15 AM

Comments (8)

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8 Comments on Should a Listing Agent really ask a buyers to pay a short sale transaction fee?

OCT

Tina, there are all manner of opportunists out there and this is one agent that really gives us a bad name. The commission for closing the contract should be it's own reward. Trying to get additional money out of a buyer for nothing other than doing your job is just greedy.

I agree with Ed. This is wrong on many levels and really puts a bad taste in clients for using a real estate professional.

I have worked in a situation where the sellers bank squezed everyone. I just had to ask myself one queston. "Is this in the best interest of my client" If the answer was no...then I didn't do it. It's too bad that some agents don't remember their Code of Ethics.

That's right. Adding insult to injury is that the listing agent actually put the property back on the market to find a buyer that will pay the fee!

I am not a fan of ANY transaction fee. They should not be allowed since there is no "service" or "value" provided for the fee.

Hmmm, what a great idea! Charge a processing fee, refundable when the deal closes. This might decrease the occurance of the #1 cause of short sales not closing...the buyer walks.

OCT

An Agent wanting to get paid for nothing? HAH!! Now where have I heard that before? LOL

OCT

Tina - I know of a number of agents who charge, or try to charge, these fees. but they have also been challenged in some courts as being illegal. Not sure about it here is CA but it just feels wrong to me. There are siome buyer agents who charge a fee too.

Jeff

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